China-based companies listed on Bursa Malaysia, or commonly known as M-chips, do not appear to take basic corporate governance matters, such as filing financial reports on time and not having accounting irregularities, seriously.
They breached listing rules and appeared to lack a sense of urgency in releasing financial statements on time. Some of them did not even disclose resignation of key executives, such as chief financial officers, to Bursa.
The regulators should be firm and not extend deadlines for them to submit financial statements. Deadlines will become meaningless if extensions are given easily.
Last November, Bursa acted tough against Multi Sports Holdings Ltd and fined three of its directors RM1.7 mil for various offences such as failing to issue its 2015 and 2016 annual reports. It also did not file its quarterly reports between June 2016 and June 2017. It also failed to make an immediate announcement on the resignation of its chief financial officer. Is it so difficult to make such an announcement?
Sadly, several China-based counters are also facing problems in releasing audited quarterly reports in a timely manner.
The latest is China Automobile Parts Holdings Ltd, which is seeking a third extension from Bursa to re-issue its audited financial statements, for its financial year 2015. The company also failed to file its first three quarterly reports last year and also its annual report for 2016.
Then there is China Stationery Ltd and XingQuan International Sports Holdings Ltd, which have also not filed their financial statements on time.
Investors are fed up at being taken for a ride. All this blatant disregard of listing rules should be stopped and no deadline extension should be granted.
